Marriott Rewards – Calculating Value

Lately I’ve been thinking of how to best apply my Marriott Rewards points.There seem to be two ways of maximizing value: maximizing number of nights or maximizing point value.

So I decided to decided to look at how it all made sense. I checked out all of Canada and every state in the US for each category for a given day in April. I then looked at the more expensive hotels over a period of months to see what their highest rates were, and verified that you could use points on those nights. I did the same with China, India, Egypt, Australia … and started to realize the numbers weren’t changing much and got bored!

After that I tried to make sense of it all … this is the result.

Earning Marriott Rewards Points

You get 10 Marriott Rewards points per US dollar spent at most Marriott hotels (for some this is only on room spending). At Residence Inn and Towneplace Suites you only get 5 points per US $. In the Marriott Executive Apartments and Execustay it’s only 2.5 points per US $. If you have the Marriott Premier Visa card you can add on another 5 points per $.

You could be earning 10-15 points per US $ spent at a Marriott hotel. This is worth from 5 to 45% of your spending depending on the points earned and how you will use them.

Maximizing Number of Nights

Maximizing the number of nights with Marriott Rewards points is quite straightforward. You simply look for the lowest category hotel you would ever stay in – preferably with a sale. At current rates a category 1 hotel is 7500 points but I’ve seen sales as low as 6000 points. If you ever spend time in a category 1 then you can’t do better than this. Spend cash on your higher category hotels and use the points for the lower category ones.

Maximizing Point Value

The other way to consider the best use of points is how many cents you will save per Marriott Rewards point. This is the standard way that most evaluations are done for points programs. There are approximations of the value of a point (such as 0.84 cents per Marriott Rewards point by nerdwallet) but that is simply an average. An average works if you collect lots of points and use them in an average way. Points get their best value from using them selectively.

Of course, like all rewards points, it’s a bit more complicated than that. You can’t say that you’ll get $300 in value for a hotel if you never spend more than $150 for instance. But if you would regularly get a hotel for $150 on Hotwire would you be willing to pay $180 – $200 – $230 for a much nicer hotel than you would normally get? That’s what you need to value your points at. And don’t forget you won’t be collecting Marriott Rewards points if you’re collecting a reward. Marriott does not have a system where you can split paying for a single night with points and cash.

If you have a free hotel night in a Category 1-4 or 1-5 hotel that comes with the Chase Marriott card then get the highest category, most expensive hotel you can and enjoy! There are no cents per points on those.

Marriott Rewards for Different Categories

You can use your Marriott Rewards points for hotels that are under $100 per night but what’s the purpose. It makes much more sense to save those points for when you need a hotel when prices are high and you can’t get a good cash deal. Let’s look at some of the best deals for your points. This is a snapshot taken in March of 2014. I looked at all the category 1-5 hotels in the US and Canada as well as a few in other countries to get an idea of the maximum value you could ever get from Marriott Rewards points. You will only get this value if you need to stay in one of these hotels at an expensive time and there are no comparable hotels around for less.

In most categories you aren’t going to do much better than 1.5 cents per point. Even those are exceptions. You’re best value is going to come if you want to stay in Baton Rouge in July … you can get over 3 cents per point in value, but don’t go out of your way to do it.

In general, if you find you can get close to 1.5 cents per point and there are no better comparable deals from other hotels or online travel agents then go for it. I didn’t take taxes into consideration nor did I take into account that you won’t be collecting points for your reward – these partially cancel each other out.

Category 1 – 7.5K per night normal rate

The TownePlace Suites Baton Rouge Gonzales tops out at $229 in July with only 7500 points required. That’s slightly over 3 cents per point in value. The regular weekend rate of $119 only has a value of 1.6 cents per point. I’ve seen a discounted 6000 point reward for the Fairfield Inn & Suites South Hill I-85 with a $119 rate. This works out to very close to 2 cents per point.

In Canada only the Fairfield Inn & Suites in Guelph is a Category 1 hotel. It has several dates at $120 (1.6 cents per point) and a last minute price of $139 (1.87 cents per point).

Elsewhere you’re looking at top rates of $80 in India.

Category 2 – 10K per night normal rate

The TownePlace Suites Milpitas Silicon Valley tops out at $319 weekdays but you can’t use points on those nights. Sunday and Thursday nights are normally $269 with only 10000 points required. That’s about 2.7 cents per point in value. The regular weekend rate of $109 only has a value of 1.1 cents per point. Most hotels are about the same value. This property is exceptionally expensive in terms of a Category 2, but you will find other hotels at about $200 per night or a value of 2.0 cents per point.

In Canada the Courtyard Waterloo St. Jacobs can charge as much as $199 which is close to 2 cents per point.

Elsewhere you’re looking at rates of $160 in China, $75-$150 in India so no more than 1.6 cents per point.

Category 3 – 15K per night normal rate

The Residence Inn Sacramento tops out at $309 which is 2.07 cents per point. The regular weekend rate $184 is only about 0.98 cents per point.

There are quite a few for hotels that charge as much as $200 per night. That works out to about 1.3 cents per point.

In Canada the Courtyard Ottawa East and Courtyard Hamilton can run $200 per night for 1.3 cents per Marriott Rewards point. You’ll get slightly better sometimes at the Residence Inn Toronto Mississauga/Meadowvale which lists prices up to $209 (1.4 cents per point).

Elsewhere you’re looking at top rates of $80-$240 in China $45-$240 in Egypt so around 1.6 cents per point.

Category 4 – 20K per night normal rate

SpringHill Suites Denver Downtown has a high rate of about $309, which is a value of a bit over 1.5 cents per point. Most of their rates are far below this.

The Residence Inn Hartford Downtown has some of the highest regular weekday/weekend prices of $229/$199 peaking at $279. This translates to 1.1/1.0 and 1.4 cents per point respectively. The Residence Inn New Rochelle and The Courtyard Fort Worth Downtown/Blackstone have comparable high average rates. SpringHill Suites San Angelo has even higher regular weekday rate of $269 which still only produces a 1.35 cent per point value.

For the most part though, Category 4 hotels are of similar price to Category 3 for a lot more points. In many cases the price per night is under $100 giving a cent per point value of less than 0.5.

In Canada the Courtyard Montreal Airport can have nights as much as $199 yielding about 1 cent per Marriott Rewards point.

Elsewhere you’re looking at top rates of $175-$290 in China, $150-$200 in Egypt, $100-$260 in Australia. You won’t be getting better than 1.45 cents per point in China or 1.3 cents per point in Australia. Egypt maxes out at 1 cent per point.

Category 5 – 25K per night normal rate

Several Category 5 hotels have daily rates that go up to $279 at the wrong time of year provide a value of 1.12 cents per Marriott Rewards point. The Residence Inn Palo Alto Mountain View, Raleigh Marriott City Center, Gaylord Texan Resort & Convention Center and the Residence Inn Dana Point San Juan Capistrano have several days at $299, providing a 1.2 cent per point value. Marriott’s Villas at Doral don’t book with points so those $399 nights are cash only. You can find the occasional room at the Residence Inn National Harbor Washington DC for $369 which is almost the 1.5 cents per Marriott Rewards point you get with the best Category 4 deal.

There are still many Category 5 hotels with nights under $100 which would be a terrible use of Marriott Rewards points.

In Canada the Vancouver Airport Marriott Hotel will charge as much as $250 (1 cent per mile). The Residence Inn Kingston Water’s Edge regularly charges $236 (0.94 cents per point) but can go up to $296 (1.18 cents per point).

Elsewhere you’re looking at top rates of $120-$320 in China, $60-$260 in Japan. China maxes out at 1.28 cents per point and Japan barely goes over 1 cent per point.

Summing Up

While on average Marriott Rewards points are worth less than 1 cent per point, you can still get better value than this. Spend cash on the more expensive hotels, earning on average 5-15% (but up to 45%) of that value in points for future stays. Unless you have more points than you know what to do with, save your points for when you’ll get over 1 cent per point. If you are getting 1.5 cents per point or better, and there are no comparable competing hotels with better value, then use your points.

Medieval Sweden

The Annual Medieval Festival in Visby

I’m going to try to write occasionally about some of the interesting but less well known places I’ve visited. This time around it’s the annual Visby Medieval Festival. This is an annual affair that takes place from Sunday to Sunday in the 32nd month of the year (beginning of August). There are about 22 000 people who live in this lively Medieval city. The number of visitors during the festival however is close to 40 000! Visby is on the Swedish island of Gotland in the middle of the Baltic Sea.

About Medieval Visby

UNESCO calls Visby “the best-preserved fortified commercial city in northern Europe”. It was the centre of Baltic commerce from about the 11th to 14th centuries. Visby was partially burned in the 15th century but retains 17 Medieval churches (2 outside the walls). There are also over 200 other buildings with substantial Medieval elements remaining. The 12th century Visby cathedral predates the city wall. There is also the 3.4km long 13th century wall remains intact today.

The Medieval Festival

The Medieval festival in Visby is taken a bit more seriously than the more touristy Carcassone in south-western France. It was interesting to see that some of the visitors left their money “somewhere else” and camped rough in the Botanical Gardens, taking on the role of Medieval beggars. The tourists wearing Medieval clothing appeared to outnumber those of us who foolishly wore jeans and t-shirts. Perhaps this is an exaggeration, but there are thousands who do dress up. Those who forgot, can buy or rent their clothing and sandals, made locally in the Medieval tradition. Much of the food and drink offered is the same as was offered in the 14th century. And of course those selling crafts during the festival can only sell those they made themselves using Medieval techniques.

No Medieval festival would be complete without jousting, jesters, music and the occasional reenactment where a woman gets built into the wall for having let the Danes in.

What Else for the Tourist?

Visby boasts some very nice restaurants that are far from Medieval by any standards. The Botanical Gardens are another must see (Swedes call Visby the City of Roses). The island of Gotland is quite flat with a sparse population. This makes it an ideal place for cycling from place to place. There are a number of sights including Medieval churches (if you didn’t get enough in Visby) and some pleasant beaches. Visby and the rest of Gotland make an excellent 1-2 week escape from modern times.

Average Age Of Credit Cards With Multiple Cards

Part of your Credit Score

The Average age of your credit cards is a factor on your credit score. If you regularly apply for new credit cards it is worth understanding how it might affect your score. This is primarily an exercise in crunching numbers to get a feel for how opening new credit and cancelling credit might change the average ago of credit cards and other credit accounts. There is no conclusion, just a better understanding of the numbers.

Impact on Your Score

The length of your credit history will account for 15% of the average person’s credit score. This 15% is not a hard and fast rule as the percentages change based on your profile. The score includes the following:

the age of your oldest account

the age of your newest account

the average age of all your accounts

how long ago specific accounts were established

how long ago since specific accounts were used

Even with the potential variation in that 15%, the average age of credit cards is going to account for a small percentage of your overall credit score. This is especially true if you have other accounts, such as lines of credit, which also factor into the average age.

Impact of Cancelling on the Average Age of Credit Cards

The age of a credit card (or any revolving account) is based on the month it was opened. When you cancel an account it does not immediately impact the age of the account or the average age of credit cards and other accounts you hold. The account will continue to age until it drops off of your credit record. In Canada this normally occurs 6 years after being closed. In the United States it is 10 years for an account closed in good standing. The maximum age of an account is therefore 6 years plus the age at which you cancelled it in Canada.

Calculating Average Age of Credit Cards

I tried calculating the average age of credit cards with a spreadsheet but it was just too difficult. After thinking about it (always a good thing) I realized that the math was very simple. As an exercise, let us assume you have no credit cards and apply for any number of cards today and cancel them in one year. The average age of those cards in 1 year will be 1, in 5 years will be 5 – it doesn’t matter how many cards as long as it’s the same number every year. The oldest those cards will be is 7 years, just before they age off (1 year open + 6 years closed before aging off). If you don’t cancel them, then after 7 years your average age of credit cards will keep going up.

If you apply for the same number of cards (let’s say 3) at the same time every year and cancel them after 1 year, the average of your cards will be:

year 0: 3×0/3 = 0 years

year 1: (3×1 + 3×0)/6 = 3/6= 0.5 years

year 2: (3×2 + 3×1 + 3×0)/9 = 9/9 = 1 year

year 3: 18/12 = 1.33 years

year 4: 30/15 = 2 years

year 5: 45/18 = 2.5 years

year 6: 63/21 = 3 years

year 7: 84/24 = 3.5 years

Note that the age is actually done in months, not years, but the numbers are bigger and look a lot more ugly. What you will find is that after 7 years the average age will climb from 3 to 3.5, then drop to 3 and repeat as cards age off. If you get a different number of cards every year then there are way too many options and you’ll have to do the math yourself ;).

If you have cards you plan to keep then add all their ages to the numerator and the number of cards to the denominator (remember those pesky math terms?). The numbers above will go up any time you don’t cancel a card. If you have a 20 year old card when you start cycling 3/6 cards per year, the average age of your cards would be:

Cycle 3 cards

Cycle 6 cards

year 0

20/4 = 5 years

20/7 = 2.9 years

year 1

23/7= 3.3 years

26/13= 2 years

year 2

29/10 = 2.9 years

38/19 = 2 years

year 3

38/13 = 2.9 years

56/25 = 2.2 years

year 4

50/16 = 3.1 years

80/31 = 2.6 years

year 5

65/19 = 3.4 years

110/37 = 3 years

year 6

83/22 = 3.8 years

146/43 = 3.4 years

year 7

104/25 = 4.2 years

188/49 = 3.8 years

So the more cards you cycle through, the less effect older non-cancelled cards have. That’s pretty obvious. But if you’re always cycling through the same number of cards you won’t ever drop below an average of 3 years after you reach year 6.

Summary

What does all this mean? That depends on a lot of factors. You don’t need an average age of 2 years to have a score over 700 if you manage the other factors well.

Not cancelling cards that don’t cost you money will help the average age. Just use them occasionally as if they aren’t used they factor less into your score and may be cancelled.

A higher average age of credit cards (or rather all your accounts) will help. How much better is an average of 3 over an average 2, or worse than an average of 10? Unfortunately I’ve not found much out there that tells you. The formulas are proprietary and there isn’t enough data showing people who have an old credit card, a variety of credit products, keep low balances and yet have a low average age of credit cards.

Keep in mind that the average age of accounts includes more than your credit cards. This should at least give an idea of the effect on the average age of credit cards if you get new cards regularly.

Petra and Highlights of Jordan

Adventure Off The Beaten Trail

Jordan is one of the more under-rated destinations and perfect for anyone who likes a bit of adventure … and unlike Egypt they actually obey traffic laws. Sure I was nearly run off a cliff when a transport decided to pass another on a blind curve, nearly was turned into pizza when the brakes failed on the Land Rover as we threaded the needle between oncoming trucks and someone did throw some dynamite into a bar in Ma’an that I had just visited … but they do stop at red lights, even at night!

Essentials for the Visitor

If you want to do Jordan right here are the highlights, more or less in order:

1. Visit Petra

I cannot stress how amazing Petra is – without a doubt it is the highlight of Jordan. Do not miss it. You should book 2-3 days for your visit with perhaps additional days in between visit days to relax. More on this below,

2. Rent/hire a car

Driving in Jordan is easy and it’s reasonably safer than having a driver who might fall asleep on the highway (it happens a lot) or drive off a cliff (also happens more than it should). Drivers will use their signals/indicators to let you know if it is safe to pass (left signal means don’t pass, right means all clear), they use their lights at night (unlike Egyptians) and follow the rules reasonably better than some places in Europe. Don’t be bothered if the highways suddenly widens to become a landing strip (unless a plane is coming) and be prepared to pull over if there’s a big sand storm. You can cheaply cross the country by taxi as well, which isn’t bad if you get a good driver (I’ve been in a cab with two drivers who took turns when they were tired – very impressed). Coaches will not get you everywhere you want to go.

3. Overnight in Wadi Rum

Wadi Rum lies in southern Jordan, not far from Aqaba. While I didn’t actually overnight there I did at least stay until nightfall. I relative of mine did overnight there and verifies that the sunrise is as impressive as the sunset. Instead I camped out in the ruins of a 2000 year old Nabatean bath house while doing archaeology elsewhere in Jordan and it was certainly a highlight. Do not go into Wadi Rum unless you have 4 wheel drive. Point of fact, an old Land Rover will hold about 13 people as long as some of you are willing to ride on the roof or hang off the sides/back – great to know if your other vehicle gets stuck.

4. Follow the Desert Loop

Do a loop east of Amman to visit the black desert and Qasr Azraq, a Roman fort in eastern Jordan where T.E. Lawrence wintered before pushing on to Damascus. On the way you can stop and visit Qasr al-Kharrana, Um-al-Jamal.

You can also see Qasr Amra with possibly the oldest picture on the celestial sky in the round.

Qasr Amra – the oldest known picture of the celestial sky in the round.

5. Tour the Roman City of Jerash

Visit the Roman city of Jerash in northern Jordan. An easy drive from Amman.

6.the Dead Sea & Crusader Castles

Drop by and visit the Dead Sea and stop at the crusader castles such as Shobek and Kerak.

A Quick Guide to Petra

Petra needs a mention on its own and it is worth the trip to Jordan just to see it. If you have only five places to visit in your lifetime then Petra should be one of them – I’ll let you choose the other four (though the temples at Siem Reap and a felucca ride from Aswan to Edfu could contend). You should plan to spend two days in Petra, with an optional day of rest in between. A third day would allow you to explore some of the less visited areas, but is not necessary.

Essentials for a Petra Visit

Petra is an adventure, not a cruise ship so dress and pack appropriately. You will be best off with very comfortable footwear, preferably hiking boots and socks that wick away sweat. Long sleeves and trousers are preferred both to risk offending the locals and to avoid sun burn, however this is one of the few areas in Jordan where shorts will be less likely to cause offense. Water and snacks would also be a good idea as the site is enormous and you may not be able to find a vendor when you want one. If you get off the beaten trail you will want to have a reserve. Also pack a map and a camera (you shouldn’t need a compass as the geography is fairly obvious).

The Siq

All visits to Petra start with a walk through the narrow gorge called the Siq, on a slight downward grade and an uneven surface for about 1.2km. You will need to conserve enough energy to make it out as the slight grade is a killer if you tried to pack everything into a single day.

Don’t expect to see much inside any of the ruins apart from the amazing colour of the stone.

The Treasury

When you arrive at Al Khazneh (the Treasury) the path to the rest of Petra will continue to the right. Turn to the right as you emerge from the Siq and look for a way to climb up the cliff opposite the ruin. There is a way that isn’t too difficult if you’re careful and it gives you an excellent view from above.

View if you climb the cliff opposite the Treasury in Petra

The Monastary

After visiting Al Khazneh go to Ad Deir (the Monastery). Do not stop for anything else – if you have the energy you can visit other places on the way back (don’t be tempted by the Nabatean theatre). The first time I went to Petra I made the mistake of visiting the High Place and then Ad Deir and was too exhausted to appreciate it. Ad Deir is second to Al Khazneh in terms of sights you will see (and second only because it doesn’t have that famous view from the Siq). To arrive there you need to descend into the valley (remember, you will need to go back again), cross the valley with its temples and Roman colonnade, then climb up into the mountains on the other side. You can follow a path that is to the left when facing Ad Deir and climb to the top but be careful – this is one of the places that tourists have been reported falling to their death and it’s a good 50m to the bottom. Expect that rocks, scaffolding etc may break apart and stay away from edges anywhere high.

Do not slip off!

Other Highlights of Petra

If you are visiting for two days you can come back the way you came and visit some of the sights on the way out, and if you have the energy as you climb back out of the valley stop by the tombs to your left (Urn, Silk, Corinthian, Palace). If you are only at Petra one day then your first priority after Al Khazneh and Ad Deir, if you have enough energy, is the High Place of Sacrafice. In a one day visit you should head to the path near the Temple of the Roman Soldier and the Garden Temple, after returning to the valley from Ad Deir, and return via the path near the theatre. In a two day trip you should start with the path near the theatre and head to the High Place early and choose what else to visit based on your energy level.Don’t bother with the Crusader Castle at Petra – it’s really not worth the effort unless you are there for 3-4 days.

Summary

That’s it – I hope you get to experience this wonderful location. Oh yes, while you can get away shorts at Petra please be respectful of local sensitivities … modest attire and learning a couple of words of Arabic will work wonders in how you are received.

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Afterward

I had been thinking of doing an article “Egypt Done Right” as that’s a country with some amazing hidden gems, but unfortunately I’ll have to skip that considering circumstances. That being said you are more likely to die in a car accident in that country than be killed in a terror attack. I was in Egypt four months before the Hatshepsut massacre and in that time saw one tourist coach turned over after it crashed into three camels and another burned out at the side of the road after it had hit a transport whose driver was likely asleep.

Note: Before applying for multiple cards please read Maximize Credit Cards for Travel which discusses the various considerations including how your credit score may be affected.

Last night I got the call from BMO regarding my credit card approval and amongst their questions was if I had any other credit cards. Hmmm … where to start.

I came into the game with a Visa, US$ Visa and Mastercard. The game started at the end of December. It started with my other half getting the Amex AeroplanPlus Gold card. This card is not the best card for daily use nor for its benefits but it does have a great sign up bonus and is free for the first year. Normally the bonus is 20K Aeroplan points but if you are referred by someone with the card you will get an extra 10K (30K in total – Distinction eligible for until April 1 2014), worth about $450 if you value points at 1.5c/point (a good starting point … you can get higher than this). You need to spend $500 in the first 3 months from the application date in order to get any points. I used the referral of someone who helped me learn about the some of the better ways to use Aeroplan points as the person referring also gets 10K Aeroplan points. If you need a referral you can use mine, or that of a friend, or that of anyone else who has helped you out. This card can be cancelled after 6-14 months if you don’t want to pay the annual fee (I have been told that Amex will refund annual fees in the first two months from the point the fee is charged).

Next up I applied for the Chase Marriott Visa card, also with the first year free, at the start of January as they had a 50K signup bonus, after your first purchase, plus a free night in a category 1-4 hotel (no purchase necessary) worth about $100-$150 if used correctly. The Residence Inn in Westmont, Montreal is 15K points per night and is a category 3 hotel that lists for $200 (although you can probably get something similar on Hotwire for $100-$150) so your 50K Marriott points are worth about $500 in that situation. TownPlace Suites in Richmond VA is 6K points or $89US per night so 50K Marriott points are worth $800 Canadian there. That’s just a quick search – you may be able to find a better deal for your points. I got the coupon for the free hotel night with the credit card but the 50K points only posted with the first statement. Let’s be conservative and say that the signup bonus is worth $600, but it could be close to $1000 depending on your need. I plan to keep this card as I’ll get a free category 1-5 hotel every year which covers the $120 annual fee, Silver Eltite status with Marriott, and it’s one of just two credit cards in Canada that I know of (the other being Chase Amazon Visa) that doesn’t hit you for 2.5% for every foreign transaction. I will only use the card for foreign transactions and at Marriott Hotels. After getting this card my Equifax score dropped 6 points for the hard pull.

The following card was an Amex Gold Rewards card for myself, also free the first year. The signup bonus was 25K, after $500 is purchased in the first 3 months, which can be converted 1:1 to Aeroplan or Avios or could be used directly at 1c/point for travel booked through Amex – I peg the value at $375. Unlike the AeroplanPlus Gold, there is no bonus for getting referred but you can still make someone’s day by using their referral. This card is much better than the Amex AeroplanPlus Gold card as you get double points on groceries, gas and pharmacy purchases (and that includes gift cards for other types of stores that you purchase in those types of stores). Alas, Costco and Walmart do not count as grocery stores for double points.

After that was the TD Aeroplan Visa Infinite card – 15K Aeroplan points for just a single purchase with points worth $225. With my other half getting one as well we were up to $1875 in sign up bonuses. TD doesn’t tell you that the first year is free but currently it is. Just phone them up (or ask at the bank – if they don’t know have them call Visa). If you sign up before May 9th 2014 you also get a free companion flight on a short-haul rewards flight – but it has to be on Air Canada metal and you need to pay fees and taxes which may make the flight more expensive than paying cash with an alternative airline. If you plan to fly to Nunavut from Ontario then that companion flight is worth a good $1500 though as would the 15K Aeroplan points which is enough to fly Ontario-Nunavut. There are other perks too but I’m only counting the value of points so far.

My fourth card, signed up for at the beginning of February, was the CIBC AeroGold Visa Infinite. Like the TD card, it has a 15K Aeroplan bonus for making one purchase and it has an advertized first year free if you sign up in time. It also provides you with an additional 5K Aeroplan points if you spend $500 in three months on the card. Total value of $300.

The latest card I was accepted for was the BMO World Elite Card. Another first year free card and a $300 sign up bonus that must be used for travel booked through BMO. It also has a bonus of a Priority Pass membership and 4 free passes to their airport lounges per year, but I’m not counting that value. This is a card that may be worth keeping if you spend enough.

So here we are, in less than 2 months with more than $2400 in rewards and still only a 6 point credit hit (you may see a much greater hit depending on your credit history – monitor your credit with Equifax – they have a free trial that will get you your score and you can phone them up before the month is up to upgrade to a free month of the premium monitoring). This week I plan to get the Amex AeroplanPlus Gold myself and for the better half to get the Business version of the Amex Gold Rewards (they don’t check if you have a business but we do have one – you need to spend $3000 in 3 months but you can always get Costco or Esso gift certificates is needed to complete the spending). Including the points for referring each other we will have another 75K Aeroplan points worth $1125. I’m hoping to add a CIBC and BMO cards for my spouse as well. That would take our Aeroplan total to: 30Kx2+25Kx2+15Kx2+20Kx2+10Kx2=200K Aeroplan points. The value of all our sign ups at the end of the week should be $4125.

Later in the year I will get the Amex Business Gold Rewards card and my other half the regular Gold Rewards card for 70K 35K more points worth $1050 $525. I also plan to get the Amex Platinum Card – a $700 fee but with $200 in travel credits each calendar year it means I’m only paying $300 for a 60K signup with referral and the 10K for the referral with is $1050 in value … net $750.

So the total by mid year should be 350K 3150K Aeroplan points (not counting spending), worth $5925$5400 for long-haul economy travel on Star Alliance airlines (such as United and Swiss) without big fees and taxes, including other signup bonuses. If we cancel the Amex cards we got at the start of the year after we’ve had them for 6 months, and assuming the sign up bonuses are still there a year from now we should be able to get another 150K Aeroplan points taking us to 500K 465K total. With 600K you can get 4 business class tickets to Asia (with fees as low as $200 each) and do a mini round the world trip (mini RTW– see my database of actual miniRTW trips taken by FlyerTalk members) with a potential ticket value of $10 000 each. Worth the trouble? I would say so ….

UPDATE

Equifax is a bit slow with the point drops but they do drop. After 5 cards applied for & approved for myself, three hard pulls reporting (one card had no hard pull and one was pulled at Trans Union) and fourfive new credit accounts (one left) showing up in Equifax there has been almost an 8085 point drop. It is just starting to creep back up 2.5 months later In theory this should start to disappear in 3-6 months but there may be some outstanding points to come off still for the credit that hasn’t yet reported. If you don’t have long established credit this will take a lot longer to recover. The last card reporting dropped the score by 7 points after it had recovered a point. There are two cards still showing “not used or too early to report”. The scores should start to recover after they report in.

UPDATE March 2014:

Amex removed the first year free for the Business Gold Rewards card (not a big deal as they may bring it back) before I could apply and also increased the minimum spend from $3000 to $5000 (changes reflected in strikeouts above). This was done without warning. I will be applying for the Amex AeroplanPlus Gold using the referral before the month is over. Amex has a promotion for the bonus counting towards distinction that expires at the end of March. I am concerned about a rumour that the extra 10K you get from a referral may disappear as well at that time.

Disney World Without the Wait

It is possible to visit Disney World without spending half your time in line. All it takes is a bit of planning and a willingness to get up in the morning!

My 2nd round with Disney World in the past three years went swimmingly well. There was no need to wait more than five minutes for any attraction in eight days (not counting for shows) and now that I’ve ended up helping plan vacations for two friends I decided it would be easier to blog about it.

Quite frankly, I don’t need to as long as there is easywdw.com. The blogger, Josh, seems to spend half his days at Disney World and does a far better job of it than I.

The Best Way To Visit Disney World

Sign up For Everything Disney

Disney sends out PIN codes to certain people. These codes are for offers not available to the general public. The offers may be released to the general public, perhaps with more restrictions and certainly with less availability. How Disney determines who gets PIN codes is a bit of a mystery but Disney does need your email address at a bare minimum. Ask for the promotional DVD. Create a Disney account and make some trial bookings. Sign up for the Disney video club. Do anything that lets Disney know you are interested. I’ve managed to get a few PIN codes and have used them twice for a free Dining Plan. The person who the PIN code must be on any tripped booked, even if for just one day – so if grandma gets a PIN and doesn’t want to go then too bad. With a PIN code you can book up to 3 rooms. The rooms need to be at the same resort and the bookings have to overlap but other than that the bookings can be different.

Show up early

This is the most important rule – if you show up 45 minutes before the scheduled opening time you will be at the front of the queue and you will have minimal waits for everything right up until 11:00am – even at crazy times like Christmas.

Josh can tell you one year in advance what the crowds levels will be and what the most favourable park to visit is on any given day – there is a huge difference between least and most favourable even on the low crowd days.

The Cheat Sheets will help you know which ride to take when – some rides get crowded quickly because of slow load times and low capacity. Book fastpasses 60 days out according to cheat sheets – don’t waste them on rides with no line ups.

Book table service restaurants

Book Disney World restaurants 180 days in advance (180+10 if you stay at a Disney resort). You need to do this to get Cinderella’s Royal Table … other restaurants may be less extreme but some still require several months in advance booking. Book Be Our Guest quick service as a free fastpass (doesn’t count as one of your three per day) – you may not get the invitation with your booking until the choice times are booked … it’s fun to walk past the hoards who are waiting.

Enjoy Disney World at Night

The highlights are the Fireworks, like Wishes and Illuminations, as well as Fantasmic and the Main Street Electrical Parade. Besides these you should do the following at night, because they are way better in the dark: Jungle Cruise, Tomorrowland Transit Authority/People Mover, Swiss Family Robinson Treehouse & Astro Orbitor.

Summing Up

If you follow those step you should have an easy time of it … provided you can wake everyone up in time.

Disney is a bit off my normal preference of travel but I still like it … and they do a few things very well: customer service, line management, the little details.

Note: This post has been expanded and turned into a more permanent page: Maximize Credit Cards for Travel which discusses the various considerations including how your credit score may be affected in a more organized fashion.

Multiple Credit Cards for Points

Considering the Effect on Credit from Applying for Multiple Credit Cards

For the last couple of years I’ve seen the promos for credit cards and thought that the sign up bonuses, while nice, were insufficient for any real travel (especially if you aren’t racking up points elsewhere) and not worth the trouble. Then I discovered that the limitations of getting a single card can be overcome by churning cards and applying for multiple cards. This left the issue of how it would impact my credit score, so I dug through an excellent but terribly long thread about credit and this are the key points I’ve dug out (caveat emptor: I am not a credit professional … these are from what I read):

Key Effects on Credit

hard credit pulls happen when you ask for credit, and shouldn’t happen if an institution has done a soft pull to increase your credit limit or to offer you a product.

hard pulls should drop your score by 4-6 points immediately but are not the only way in which your score can be affected by new credit.

the point losses from a hard credit pull effects diminish after 6 months and are irrelevant after between 1 and 2 years (as long as you keep your score high you should be able to churn cards as long as you quit 1-2 years before looking for a mortgage/line of credit).

hard pulls done in the same week should show up as a single check in the formula so requesting multiple cards on the same day should hurt less

most hard pulls are done against Equifax while a few, like Amex are done against Trans Union – choosing applications that hit different organization will hurt less (you will still get new credit hits) as they will reduce different scores.

new credit is considered a risk and may bring your score down. This negative effect on your score will be increased by having a shorter credit history and opening multiple credit products in a short period of time. New credit becomes older credit after a year or two and the negative effect diminishes.

holding three credit cards is most favourable … more or fewer can hurt your score (although a bunch of old ones would be good)

keep the balances ideally under 30% or at least under 75% (doesn’t matter if you pay it off every month … trying to average under 30% usage if you can). Be careful when cancelling credit cards that you don’t increase your balance percentage too much.

keep your oldest card … don’t get rid of it but you can downgrade a fee based card to a non-fee based one and keep the history if you want. The age of your oldest card helps … and the average age of all your cards helps so having a really old card or a couple of older ones is better (with a 20 year old card you can have 3 brand new ones and still have a 5 year average … the older your cards the more you should be able to churn at one time). Be careful cancelling older cards that will decrease the average age of your cards.

keep a card with a high limit if you don’t have older cards with high limits … you don’t want to increase your overall credit ratio of balance/limit too much

use a new card for minimum 3-6 months so that it reports R1 instead of R0 … make sure you use it at least once (and pay it off) just before cancelling so it shows up as R1 on the credit report (this applies to any old cards that haven’t been used in ages … use once, pay, THEN cancel)… ideally use every card once a month to keep them reporting. A card that is R0 (to new to report) will affect your score negatively and will not be looked on favourably by any person approving your credit. A card that is closed R1 should not affect your score if it does not increase your credit usage percentage significantly (e.g. move you above 70% usage).

missed payments stay on your record for 7 years (longer exceptions involving bankruptcies) but it’s only reported if you miss by 30 days or more (except Sears who report right away). Missed payments can have a major affect on your credit score and should be avoided at all costs.

dropping store credit cards helps your credit.

having a mix of credit types helps your score (lines of credit etc).

there are lots of places that show you what percentage of your score comes from paying on time, new credit etc … they don’t always say that the fine print says that mix may change depending on your profile.

if you keep your score above 650 you should have few problems getting credit. If you keep your score above 700 you will be looked on very favourably.

Credit risk in a nutshell

If you have a long credit card history, a mix of credit types, always pay your bills on time and keep a low balance on all your revolving credit, aren’t looking for a mortgage or line of credit in the next year and your score is above 750 then you should be able to apply for multiple cards (2-5) at one time comfortably (unless you have a short credit history). To be certain you can check your scores before and after you’ve started applying for cards. Leave 3-6 months for your credit to start recovering before applying again. One or two cards every 6 months will have a lot less affect than a so-called app-o-rama (several cards at once – monitor your credit score carefully if you try this).

How do you know your score? Go to Equifax or Trans Union – Equifax, at the time of writing, had a free month for their basic monthly service (scores update every 3 months), which can be updated by phone for a free month of the premium service that updates daily.

Maximizing Points with Multiple Credit Cards

What is the benefit of multiple cards? One is to collect the greatest value of points that your credit comfort will allow. Lets take a look at a couple signing up to a few of the latest offerings:
Person 1:
– Signs up to Amex Aeroplan Gold with a referral & spends $500: 30K
– Signs up to Amex Gold Rewards (with referral from partner) and spends $500: 25K
– refers partner for Aeroplan Gold: 10K
– Signs up for TD Aeroplan Infinite and buys 1 thing: 15K
– Signs up for CIBC Aerogold Infinite and spends $500: 20K
Total: 100K

They can now both go to Europe in business class (90K) with 2 stops plus a destination (there are fees involved … a lot less with United or Swiss than AC).

Instead they wait … mid year person 1 gets the Amex Business Gold Rewards (referred by person 1) and spends $3K: 25K
Person 2 gets the Amex Gold Rewards (referred by person 1) and spends $500.
They each get 10K in referrals.

Now they each have 135K in points … lets say they spend $750 per month on groceries/gas/pharmacy on their Gold Reward cards and $500/ month on other things on their gold rewards … that’s 2K Aeroplan points per month. In 15 months they will each have 150K points total and are off an around the world trip that could be worth $10K.

UPDATE:

I was accepted for Amex Gold Rewards (hard pull on Trans Union), three Visa/MC cards (hard pulls on Equifax) and one Visa with no hard pull (pre-approval) in a period of 60 days. The first hard pull generated a 6 point hit. The score dropped another 9 points after a month but it’s unclear as to what triggered the drop. With all three non-Amex hard pulls reported and two of four new non-Amex cards reporting as new credit, the total drop is a little under 40 points. The new Amex card posted to Equifax two months after it was opened and I have not monitored Trans Union (nor do I deem it necessary). With one card left to report the total drop in credit score is almost 80 – still quite healthy but I will wait to see how long it takes to recover. My credit profile is appropriate and I monitor the effect.

Note the bonuses mentioned here may be out of date but the analysis isn’t. You can look at the page Maximize Credit Card Points for Travel for in depth and up to date information on current offers.

There are a lot of different sites that compare credit cards but one thing I couldn’t find was some good advice on how to take advantage of signing up for cards just for their bonus points. Some sign-up bonuses require no minimum spend and so are “free points” assuming your credit score can absorb the hit (I’ll go on about that in another post later). Others require a minimum spend, and if you’re spending money on those, you aren’t earning points with your regular credit card which should be earning you at least 1.5c per $ (while the data here is focussed on Canadian credit cards the principles are the same elsewhere). Is it worth it to spend your money meeting a minimum spend on a card for the sign-up points? This is a sampling at a point in time but the principle can be applied with other cards.

This analysis assumes that one signs up for a card and only keeps it for one year to maximize the value of the sign-up bonus and any free for first year offer, and cancels the card before having to pay for a 2nd year. Some cards may be worth keeping but that’s being ignored for the purpose of this analysis. The only thing being looked at here is that one gets a card and makes the minimum spend (if any) required to get all the sign up points. One thing to take into consideration though is insurance when redeeming points. BMO World Elite is one of the few cards that provides rental car insurance and flight cancellation insurance if you pay only partially with your card or use points – most cards do not provide insurance if you use points. This is not a problem with cards where you book and pay, then claim back points later, but it can be when you need to book with points.

The table below has the following columns:

1) Card – the name of the card

2) The cost of the card for the first year. Some are $0 as at the time of writing they waived the first year fee.

3/4/5) The bonus for signing up. Some require a minimum spend ($500/$1000/$3000 in 3 months), others only one purchase, and the CIBC cards a bit of both. I am only counting points … if you want to factor in the value of airport lounge passes, trip insurance etc whose value will vary greatly by need then you can do the math and write your own blog add it in a comment! 😉 )

6) The total value of the bonus and the points from the minimum spend assuming you make the minimum spend. This assumes that Aeroplan, CIBC Aventura and RBC Avion points are worth about 1.5c per point. YMMV.

7) The “free value” column is the value of the sign-up bonus assuming you made 1 purchase but missed the minimum spend, minus the cost of the card.

8) The last column is the return on each $ spent. This is the value of the total points (minus card cost) if the minimum spend is met divided by the money spent to earn the points (not including card cost). This is a way of prioritizing spending … for instance the Amex Aero Gold card returns 91,5c in points for every $1 spent vs the business version that returns 14c in points for every $ spent (in fact all the cards except the TD Aero Infinite Privilege vastly outperform what you would pocket in points from your day to day card – that TD card would lose money, although it may have other benefits that are worthwhile) . The TD Aero Infinite returns $225 for every $1 spent assuming you just but $1 of stuff. This value needs to be seen in context as the CIBC cards would return the same value as the TD Aero Infinite if you don’t spend the $500.

Note … these tables assume that you get the referral bonuses which are available for some Amex cards (e.g. Amex Aero Gold is 20K bonus without referral and 30K with referral), otherwise the value may be less (you can consider this link for Amex Aeroplan cards or this link for Amex Gold/Platinum rewards cards to get the referrals, all of which I will get a bonus from – the links I provided for other cards I do not get any benefit from). Nor does this table assume any value you may get from making referrals with your Amex card (10K/15K) which can add to the value of those cards.

* The fee for the Platinum card is $699 but each calendar year you get a $200 travel credit. If you get the card mid-year you can get two travel credits and cancel before the year is up … I used $299 as the fee. If you won’t use the credits the math works differently.

Note that the TD cards don’t advertize the first year free but if you call in or go to a bank you should get the card for free. I’ve had to get the people in the branch to phone Visa to verify that the first year is free. The May 9th deadline is for the bonus short-haul companion flight offer – the deadline for the 15K Aeroplan points and first year free is unknown.

**RBC Avion is free the first year if you have an Infinite card from another bank – there may be issues with customer service reps asking you to cancel your old card – hang up and try again. I’ve pegged the value of RBC points at 1.5c per point … like Aeroplan points there’s a huge variation in the value of those points. There’s a link above to a good summary article about this. You can convert to BA points, in the past with a 50% bonus from time to time. Fixed rate redemptions are 1c per point. Avion Air Travel Redemption Schedule can get you over 2c per point.

***Scotiabank is offering $300 on top of 15K to those with preapproval.

BMO points must be redeemed at a fixed rate when booking directly from BMO travel service.

Capital One Aspire World, Scotiabank and TD points can be redeemed after the fact on purchases from any travel provider via the card. Capital One has a tiered system that needs attention to maximize value, while Scotiabank and TD are at a fixed rate.

RBC points must be redeemed for RBC rewards with a variety of values or transferred to British Airways points.

CIBC Aventura points must be redeemed for flights from CIBC with a variety of values.

UPDATE: Added details about the TD first year free and deadline and on all card redemption options.

There won’t be much on the blog for now. My latest experiment is to take mini-RTW data from flyertalk and make it into something more browsable. Mini Round the World Trips are taken with Aeroplan miles where a reward allows you to cross the Pacific one way and the Atlantic the other. There are others who blog about these trips better than I … I’m just starting to realize the potential for getting points (and lots of points) for the trips and decided to help out how I know best … data analysis and databasing. Hope it’s of some use to someone!